VZCZCXRO6368
PP RUEHFK RUEHKSO RUEHNH
DE RUEHKO #1411 1740453
ZNR UUUUU ZZH
P 230453Z JUN 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3981
INFO RUEHBJ/AMEMBASSY BEIJING 0030
RUEHRL/AMEMBASSY BERLIN 1653
RUEHBY/AMEMBASSY CANBERRA 3217
RUEHUL/AMEMBASSY SEOUL 6061
RUEHFK/AMCONSUL FUKUOKA 4786
RUEHHK/AMCONSUL HONG KONG 6811
RUEHNH/AMCONSUL NAHA 7117
RUEHOK/AMCONSUL OSAKA KOBE 8589
RUEHKSO/AMCONSUL SAPPORO 5312
RUEHIN/AIT TAIPEI 7378
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAEPA/HQ EPA WASHDC
RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS TOKYO 001411 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/J, EEB, AND OES 
PASS TO USTR FOR AUSTR CUTLER AND M. BEEMAN 
COMMERCE FOR H. MISISCO, D. BARZDUKAS, AND D. LEE 
EPA FOR CHRISTOPHER GRUNDLER 
 
E.O. 12958: N/A 
TAGS: EIND EFIN PGOV SENV KGHG JA
SUBJECT: NISSAN DISCUSSES U.S. AND GLOBAL AUTO INDUSTRY, 
PLANS FOR ALTERNATIVE VEHICLES 
 
REF: A. TOKYO 890 
     ¶B. TOKYO 515 
     ¶C. TOKYO 345 
     ¶D. TOKYO 228 
 
SENSITIVE BUT UNCLASSIFIED.  CONTAINS PROPRIETARY INFORMATION 
 
¶1.  (SBU) Nissan Senior VP for External and Government 
Affairs Hitoshi Kawaguchi and International Affairs General 
Manager Takehiro Kasai met June 10 with EMIN and FCS Minister 
Counselor, the first such meeting between senior Nissan 
personnel and emboffs in a number of years.  Kawaguchi opened 
stating Japanese automakers, including Nissan, want to see 
stability in the U.S. auto market and noted all Nissan's tier 
I and II parts suppliers in North America also serve U.S. 
automakers, noting that a stable market benefits all 
automakers.  He stated the USG's actions are a necessary 
response to the current crisis, but stressed the need for 
fair competition as the U.S. and global economy moves into 
the recovery phase.  Kawaguchi also asked about the "card 
check bill" under consideration in the Congress. 
 
¶2.  (SBU) Looking at the global market, Kawaguchi expects the 
U.S. market to recover before Japan's due to stronger U.S. 
demand, but he has not yet seen signs of a recovery and 
expects it will be slow when it does occur.  Nonetheless, 
Nissan has not reduced production at its plant in Tennessee, 
Kawaguchi stressed.  One bright spot for Nissan is the 
consumer response to recent GOJ incentives for "green" 
vehicles (Ref A).  The measure resulted in increased Japanese 
sales of high-mileage and hybrid models in May, but sales 
figures are still lower than they were last year.  For the 
U.S. market, Kawaguchi called the "clunker bill" before 
Congress the "great hope" of the auto industry for a speedy 
recovery. 
 
¶3.  (SBU) Responding to Emboffs' questions, Kawaguchi said 
Nissan has been borrowing significant money from the 
government-owned Japan Bank for International Cooperation, 
including to support Nissan's U.S. operations.  Kawaguchi 
said the loans have helped avoid a situation where small and 
medium-sized businesses are precluded from being able to get 
loans from financial companies.  The loans have also helped 
Nissan hold down its debt and maintain its credit lines with 
private banks. 
 
Betting on Electric Vehicles 
---------------------------- 
 
¶4.  (SBU) Discussing next generation vehicles, Nissan 
believes electric vehicles (EV) offer the best technology. 
Kawaguchi sees current hybrid cars as a bridge technology to 
pure electric vehicles which produce zero emissions at the 
tailpipe.  He sees hydrogen vehicles as a much more distant 
prospect.  Nissan plans to enter the EV market in 2010.  It 
has applied for Department of Energy loans to produce EVs in 
the U.S. and expects a decision soon. 
ZUMWALT